Women pay higher mortgage rates in 49 states

In Mississippi, single women on average paid 3.47% on a 30-year, conventional fixed-rate mortgage in 2019. But single men on average paid 3.37%, according to the latest HMDA data available. Over the lifespan of the mortgage, the single woman in this instance will have roughly $7,000 more in mortgage payments than the single man.

Patrick Boyaggi, CEO and founder of Massachusetts-based lending startup OwnUp, says this issue hasn’t drawn enough attention in the mortgage space. His analysis of HMDA data found that women paid higher mortgage rates than men in 49 out of 50 states, the lone exception being Alaska (the analysis assumes that the loan size averaged $345,000 and the prime rate was 3.00%).

“The latest HMDA data makes it startlingly clear – women are largely being left out of the conversation,” Boyaggi said. “Recent HMDA data confirms that discrimination in the home-financing process is very real.
The main reason? Many female borrowers simply fail to shop around for the best possible rate, which translates into losing thousands of dollars over the total life of their loan.”

Boyaggi admits his analysis is not exactly revelatory – it’s been well documented that women pay higher mortgage rates, and the reasons for it are many and complex.

He said he didn’t intend to undertake a sociological study to determine all of the reasons women pay more. It’s more important to acknowledge there’s a problem and take action, he said.


Should lenders look to non-QM when the refi boom slows?

HousingWire recently sat down with Tom Hutchens, Angel Oak EVP of production, who shared how non-QM lending could be an effective way for lenders to replace lost business in the event of a refi boom slowdown.

Presented by: Angel Oak

“I am not certain everybody is aware of it or believes it’s a real issue,” Boyaggi said. “We believe it is a systemic-wide problem…women are not being treated fairly…For us, it’s really about it not being 50-50. And therefore, it’s a systemic problem. Let’s bring that to light first and let’s start worrying about the solutions versus trying to nitpick as to why it is an issue. It is an issue. We know it’s an issue. How do we make it better, versus trying to justify it or come up with some kind of rationale for it.”

According to Boyaggi’s analysis of HMDA data, the five states where women overpay most on a mortgage were Mississippi (delta of $7,077 over the course of the mortgage), Alabama (delta of $6,006), Ohio (delta of $5,856), Florida (delta of $5,591) and New Jersey (delta of $5,515).

Single women typically paid between 8 and 10 basis points higher on a mortgage. In Alaska, single women paid an average of 3.21% while single men paid 3.23%, Boyaggi found. The four other best states for women applying for mortgages were Maine, Wyoming, Montana and Oregon. Single women paid between 1 and 3 basis points more on mortgage rates in those states than single men.

An Urban Institute study from 2016 found that single women were better at paying their mortgages than single men, even though they paid higher rates. The study also found that single borrowers, particularly women, are more likely to be minorities, from lower-income areas, and they are more likely to have a mortgage that eats up a higher percentage of their income.

“One possible explanation is that women, particularly minority women, experience higher rates of subprime lending than their male peers,” the UI study said. “Another explanation is that women tend to have weaker credit profiles. We find that both these explanations are true and largely account for the higher rates.”

Though subprime lending has declined since the study’s publication, mortgage underwriting standards in general are much tougher since the financial crisis, and aren’t particularly flexible.

“There is somewhat of a plain vanilla, one-size-fits-all mortgage underwriting standard, and that’s not very good at accommodating minority borrowers in general, or anybody with any sort of a non-typical, non-generic credit profile,” Guy Cecala, CEO of Inside Mortgage Finance, told Wharton Business Radio in 2016. “Minority buyers in general are getting fewer mortgages than they did before. The good news is that they’re not getting subprime loans, because the subprime market has dried up completely, but they’re not getting mortgages at all in many cases.”

Asked if there could be a potential level of bias against women borrowers, Cecala said in the same interview, “I think there can be. The mortgage market prides itself on being color blind, and essentially using a black box, but any sort of black box basically discriminates against single borrowers, lower-income borrowers and borrowers with lower credit scores. If those happen to be predominantly women, you have to assume that they are getting that kind of treatment from the mortgage market.”

Boyaggi, whose firm Own Up helps consumers shop for mortgages and negotiates prices on their behalf, said more awareness simply needs to be raised.

“There’s a lot of things that happen in this industry where if you just looked at it you’d be like, ‘Oh 10 basis points, .010%. What are we talking about?’” he said. “But if you were to say, ‘Hey, this gas station charges women 10 cents more than men,’ we would be in an uproar. There would be stories about it everywhere, right? People would vilify that gas station, and rightly so.”

Source: housingwire.com

Western Alliance to acquire AmeriHome for $1B

Depository bank Western Alliance has reached a deal to acquire correspondent lender AmeriHome for $1 billion in cash, the firms announced late Tuesday afternoon.

With the acquisition, Western Alliance will grab full control of America’s third-largest correspondent lender from an affiliate of financial giant Apollo Global.

AmeriHome purchased approximately $65 billion in conventional conforming and government-insured originations in 2020. The nonbank lender works with a network of over 700 independent mortgage banks and credit unions. It also manages a mortgage servicing portfolio estimated at around $100 billion in unpaid balance.

Acquisition talks began in the fourth quarter, not long after Western Alliance bought non-QM aggregator Galton Funding for an undisclosed amount and AmeriHome’s IPO was delayed.

“It just so happened that AmeriHome approached us about potentially completing a transaction and we decided to look at it, that was in the fourth quarter,” Stephen Curley, division president of Western Alliance, said in an interview with HousingWire. “It came together really quickly. We’ve known the management longer than the four years that they’ve been a customer.”

The management team at AmeriHome, led by CEO Jim Furash, will remain in place and there will be no layoffs, Curley said. Synergies will result in about $50 million in savings, mostly through offering warehouse lines that currently go to other banks, Western Alliance said.

The purchase price represents approximately 1.4x adjusted tangible book value of AmeriHome. Before the end of the second quarter, Western Alliance intends to raise approximately $275 million of primary capital through the sale of common stock. The acquisition is expected to close in the second quarter of 2021.

“It’s a very financially compelling transaction, which produces 30% EPS (earnings per share) accretion for a full year,” Curley said. “We feel like it’s a really good acquisition for shareholders because it grows our earnings per share. It also diversifies our revenue profile so we’re going to see a nice increase in fee income. We’ve normally been a spread income lender, and we haven’t had as much fee income, so buying AmeriHome brings in an important source of fee income.”

The other factor, he said, is that banks these days are awash in liquidity. “We feel like AmeriHome can help us deploy that liquidity in higher-yielding, low-credit risk assets,” Curley said. “We are very familiar with their manufacturing process, we know that they produce high quality assets. We believe that’s a good fit for our balance sheet.”

Western Alliance, which operates more as a business-to-business bank rather than a consumer-focused retail lender, said they are looking at AmeriHome for its long-term potential.

“People will ask us, ‘Are you buying at the peak?’ so to speak,” said Curley. “We really looked at 2019, 2018 volumes. We really didn’t factor in 2020 volumes and profits into our strategy” because it was an outsize year, he said.

Source: housingwire.com

IT Jobs; VOE, CRM, Non-QM Products; Conventional Conforming News; CPI: No Inflation Worries

IT Jobs; VOE, CRM, Non-QM Products; Conventional Conforming News; CPI: No Inflation Worries

Here we are in the seemingly 58th week of 2020. What’s new? The podcast of today’s commentary features thoughts from the Millennial host on how lenders can address that market, and it can be heard via Apple, Spotify, or Google: subscribe and download. In terms of news, the FHFA extended forbearance protection past March. (More below on that.) And rating agency Moody’s view is that the CFPB’s recent changes to the QM rules would “allow lenders to qualify more types of loans as QM, resulting in a non-QM market with loans of lower credit quality, since most of today’s higher-quality non-QM loans would qualify as QM under the new rules, making future non-QM more synonymous with non-prime… the rule, if implemented could incentivize some lenders to price riskier loans lower than their true risk in an effort to fall within the new QM rule’s APR threshold. QM status conveys potential benefits to lenders and securitization issuers, such as protection against legal challenges and exemption from securitization risk retention.” More on this below as well, remember, the mandatory compliance date for the revised general QM and seasoned QM definitions is July 1.

Lender and Broker Services and Products

As the rush of mortgages and refis continues to flood the industry, it’s no secret that everyone’s feeling the deluge and leaving valuable loans on the table. At Truework, we know you’re feeling overwhelmed. Here are three things you can do to stop leaving valuable loans on the table, and take advantage of the market so you can come out on top. Truework is a US-based company with an expansive and ever-growing network and a dedicated team of mortgage professionals that are committed to tackling and completing any and all VOE/VOI requests. Additionally, we are the market leader for coverage for small and mid-sized companies. Start a verification on Truework now. Furthermore, with Truework, you can reverify employment for any request within 90 days of the original, receive up-to-date statuses on all verification reports, and get fast turnaround times. And for a limited time, Rob Chrisman readers get 6 free Verifications ($240 value). Let us do the heavy lifting so you can focus on what matters. Reach out to Zackary Green now for questions and to claim this offer.

Attention ClosingCorp and Reggora customers! If you use either of these platforms, you can now order appraisals and check the status of reports directly from within these systems – no need for yet another login. Triserv is fully integrated with both ClosingCorp and Reggora, as well as many other LOS and other technology providers. Triserv is a 50-state AMC that has client-specific, dedicated teams on both coasts offering high-touch, personalized service. To find out more, contact Triserv Appraisal Management Solutions.

Mortgage demand among self-employed and credit-challenged borrowers is still growing, according to Verus Mortgage Capital, the industry’s largest purchaser of Non-QM loan products. Largely ignored by lenders since COVID struck, the consumers demand has not changed. Fortunately, Non-QM guidelines are back to pre-COVID levels and some pricing is actually better, attracting more originators to this business. It’s time to help borrowers who don’t fit into the GSE credit box and who need the flexibility offered by the leading Non-QM investor. For more information about adding Non-QM products to your menu contact Jeff Schaefer, EVP of Correspondent Sales (202-534-1821).

One month into 2021 and Stearns Wholesale is already kicking the new year into high gear with exciting new tech developments! This week, Stearns has reduced its minimum lock duration from 60 to 45 days, reduced the minimum credit score to 620 now allowing up to 90% LTV on its Accelerator program, and removed the COVID cash out adjustment of .375. Stearns has also enhanced its Jumbo Loan Guidelines, which now allows 2nd homes, a max loan amount of $2 million and a minimum credit score down to 700. If you want to learn more about these exciting new product updates or partner with Stearns, click here to be contacted.

It’s a well-known fact that 2020 was a banner year for the mortgage industry. As you look over your 2020 numbers, ask yourself, “is this the best we could have done?” If you’re not working with Sales Boomerang to maximize borrower retention, the answer to that question is, “Nope. You definitely could have done better.” Sales Boomerang notifies lenders when someone in their database is ready for a loan. And the numbers speak for themselves: up to 65% borrower retention and 20-40% average lift to loan volume, all for around $299 per acquired loan — an average 20x ROI. Want more proof? With a loan loss report, Sales Boomerang can show you which competitor took your deal, the loan amount, type of loan, the term and much more. Request yours from Sales Boomerang today to learn how you can keep more of your borrowers.

As industry experts, TMS anticipates 2021 should see a steady rise in mortgage rates, and consequently, the refi faucet slowly turning off (eventually). The purchase market will once again be lenders’ bread and butter, although with slightly modified, post-COVID conditions. TMS CAREspondent has compiled some great tips in its new blog to help lenders prepare for this impending shift. Partner with TMS today.

While there’s no crystal ball capable of showing the industry’s future, MBA Chief Economist Dr. Mike Fratantoni is the next best thing. Join LBA Ware for the first of its quarterly webinar series More Insights, Better Decisions: Michael Fratantoni’s 2021 Mortgage Industry Outlook for a data-packed discussion on the state of the mortgage industry. Drawing on the latest stats, Mike will help you take a data-driven approach to your business decisions this year. Register for the free webinar, which takes place tomorrow, Thursday, February 11, from 1-2 pm ET.

“When people and robotic processes work together, loans get completed faster, error free.” If Elon Musk chose the mortgage industry, that’s how he’d do it. It’s how modern assembly lines achieve maximum efficiency. Yet many loan teams still handle loan files the old-fashioned way with tedious data entry, error-prone, time-consuming communications, and no way to get visibility into what may be at risk of missing critical deadlines. Now imagine an online, ultra-productive, “loan assembly line” that coordinates every step for every loan, actively prioritizes everyone’s tasks and eliminates tedious, routine work in your CRM+POS+LOS. That’s what TeamworkIQ does for $24/user/mo. It makes sure things get done right and get done on time while tracking each loan’s details, documents, deadlines and turn times. Loans get done faster and error free. What if you could 4x your efficiency in under 30 days? See how American Pacific Mortgage did and test-drive TeamworkIQ for free.

Leverage your existing technology ecosystem… it’s paid for!  Service 1st is integrated with multiple LOS and point of sale systems for TRV, SSV, VOE and credit reporting, with more added each year. Keep your team safely engaged and instantly cascade through S1 solutions within your IT environment. Additionally, many originators and lenders experienced significant VOE and credit reporting cost increases as we entered 2021. Have you contacted S1? S1 creates significant value via loan manufacturing efficiencies: Results (verifications and tradeline updates delivered 50% faster than industry benchmarks) without the hefty price tag. No signup fees or minimums.  Get started today with a no obligation price proposal at srv1st.com.

There’s still time to register for XINNIX’s upcoming quarterly Leadership Lessons Webinar: “Beyond the Daily Commentary 2021: A Live Q&A with Rob Chrisman” happening today at 1 PM ET. XINNIX Founder & CEO, Casey Cunningham, will be hosting this live Q&A session likely on topics focusing on exactly what is important to you. Reserve your seat today!

FHFA, Freddie, Fannie News Impacting Borrowers Everywhere

Huh? Freddie and Fannie operated like utilities? Let’s see how that is working out for PG&E and California. Seriously, what if the Administration left the two of them under conservatorship? It would certainly leave industry pundits less to talk about, right?

The Federal Housing Finance Agency (FHFA) extended the forbearance period to 15 months for GSE borrowers. This is an additional three months beyond the previous 12-month limit. Black Knight had reported that nearly 25% of all (not just GSE) active forbearance plans were scheduled to reach their 12-month expiration in March, and another nearly 15% in April. This extension should provide support for troubled borrowers through the difficult winter and early spring months. We view this announcement positively for mortgage credit broadly. In our coverage universe this primarily benefits mortgage insurers and mortgage REITs.

Fannie Mae issued Selling Guide Announcement SEL-2021-01 which includes update information on the verification requirements related to seasonal and secondary income, the seller/servicer post-purchase adjustment (PPA) process to require the use of the PPA form, and the removal of references to lenders authorizing release of MI data.

A recent Compliance Update from First American Docutech discussed Freddie Mac’s announcements in Bulletin 2021-4  regarding CMT-indexed ARM, IRS Form 4506-C, and

authorized change for the uniform Oklahoma Mortgage (Form 3037). And Fannie Mae is retiring CMT Arm Products per FNMA LL-2021-05; more information in Compliance News.

loanDepot’s Weekly Announcement includes the Fannie Mae Appraisal Risk Management Policy Reminders and Resources and updates on FHA Loan Limits 2021. loanDepot has new programs available, smart Term Conforming and High Balance. Information on these programs and updates to its Conventional Lending Guide are discussed in this Announcement.

PRMG announced the expiration of QM Points and Fees Cure Provision on covered transactions with consummation dates after January 10. Impacted loan programs include Conventional (Fannie Mae and Freddie Mac), FHA and USDA. Lenders or assignees will no longer be allowed the option to cure the transaction and bring it into QM compliance when the total points and fees exceed the applicable limits.

Plaza Home Mortgage offers Fannie Mae HomeStyle® and Freddie Mac CHOICERenovation® loan programs. Download Plaza’s flyer for more information. In alignment with Freddie Mac Bulletin 2020-45, Plaza has updated the Home Possible® program guidelines, effective for all loans purchased on or after March 1, 2021. Specifically, this update reduces the maximum LTV from 95% to 85% for certain Home Possible Mortgages secured by 2-4-unit properties.

COVID tolerances have been extended on Flagstar Bank Conventional Products. Read Memo 21011 for details.

MQMR addressed how internal audit policies and procedures can meet federal and agency requirements. It discussed Fannie Mae’s release of several checklists as part of their Seller/Servicer Risk Self-Assessments, including the Internal Audit checklist. Internal audits are an important risk mitigation tool that uncover operational inefficiencies and potential areas of risk within a lender’s organization. For that reason, it is important for sellers/servicers to know that their Internal Audit policies and procedures satisfy federal and agency requirements and are effective for identifying risk. The article provides a list of requirements for an internal audit self-assessment checklist.

MQMR also spoke to the best practice of requiring outsourced service providers, such as contract underwriters and processors, to be checked against exclusionary lists. While the practice may not always be feasible to do, particularly if the lender is not made aware of the individual contract underwriter’s/processor’s name by the third party service provider that employs them, the article provided a summary of Agency guidelines on this issue from Fannie Mae Selling Guide Chapter A3-3, HUD Handbook 4000.1, Chapter II, A, 1, iii, and Freddie Mac Seller/Servicer Guide Chapter 3101.

Capital Markets

Our economy is driven by jobs and housing, and it is worthwhile to take another look at the employment numbers last week to keep things in perspective. After falling 227,000 in December, nonfarm payrolls increased a mere 49,000 in January disappointing many analysts who were expecting a more robust number. But thanks in part to a drop in the labor force, the unemployment rate fell from 6.7 to 6.3 percent. The U-6 unemployment rate, which includes those marginally attached to the labor force as well as those who are working part-time but prefer to be working full-time, declined. And initial claims for unemployment have been slowly declining and February’s outlook remains positive. Claims are still well above pre-recession levels and still largely affecting those in their prime working years. On top of that, U.S. manufacturing continues to improve according to the latest ISM Manufacturing Index. Inflation? Commodity prices rose nearly across the board for the month. Services also continued to expand but arts/entertainment/recreation, education services, and retail trade continue to struggle in the face of the ongoing pandemic.

Looking at rates Tuesday, Treasuries yields rose marginally across longer durations and the MBS basis ended Tuesday tighter, particularly on higher coupons as investors weighed the latest on stimulus, earnings, and vaccination efforts, trying to determine whether letting the economy run hot will spark destabilizing inflation. The day’s $58 billion 3-year note auction was met with solid demand ahead of today’s $41 billion 10-year Treasury note auction results.

Today’s economic calendar is already underway. Mortgage applications decreased 4.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending February 5. 30-year mortgage rates remained near their cycles lows during the reporting period (2 7/8). We’ve also had January Consumer Price Index (+.3 percent, as forecast, much of the gain due to gasoline, the core rate was unchanged). Coming up are December wholesale inventories and sales, remarks from Fed Chairman Powell on the “State of the US Labor Market” before the Economics Club of New York, and the January budget deficit from the Congressional Budget Office. Today’s Desk purchase schedule is the largest of the week at $8.8 billion over three operations, including over $7.3 billion in UMBS30s. We begin the day with Agency MBS prices unchanged and the 10-year yielding 1.15 after closing yesterday at 1.16 percent after the CPI data reminded us that inflation is currently not an issue.

 

Employment

“OpenClose continues to experience record setting growth while bank, credit union, and mortgage lender demand for our award-winning digital lending ecosystem is booming. This success makes available exciting opportunities for experienced mortgage banking and innovative software professionals to join the OpenClose family. We are seeking qualified and energetic professionals to join our implementation team as a Mortgage Software Implementation Specialist. The specialist will be responsible for the implementation of new customers and work with existing customers providing business + channel + user analysis, workflow evaluation, application setup and optimization of installations of our Web-based, enterprise-level mortgage software platform. Notable is that OpenClose is a 100% browser-based platform and can largely be implemented remotely. Minimal travel, if any, is involved in this position. Come see why OpenClose has received the Top Mortgage Employer award four years running. This and other opportunities can be accessed at Join the OpenClose Family!”

STRATMOR Group is anticipating a significant uptick in Merger and Acquisition activity in 2021. As a follow up to its recent open-position post, STRATMOR is seeking a professional with at least two years of hands-on M&A or Private Equity experience. This is a junior level position that will benefit from STRATMOR’s extensive experience in this industry. Employees of STRATMOR enjoy working at a company that has successfully managed remote work for decades and continues to grow in importance in the market. Specifically, this new hire will assist the STRATMOR team with tracking the M&A deal pipeline, generating interest with new M&A candidates, and creating Confidential Information Memorandums (CIMs), and financial models. If you are looking for an exciting new position with a highly respected mortgage consulting firm, then drop STRATMOR a note.

 

Source: mortgagenewsdaily.com

Assurance Financial Review: So Fast You Can Apply During Halftime

Posted on February 11th, 2021

Today we’ll check out a mortgage lender based in the south by the name “Assurance Financial,” which is headquartered in Baton Rouge, Louisiana.

Aside from being fans of LSU, they also say you can apply for a mortgage during halftime, which is handy if you’re a sports fan.

They’re able to get things done quickly because they’ve employed the latest cutting-edge technology, and they do everything in-house. Let’s learn more.

Assurance Financial Fast Facts

  • Direct mortgage lender that operates online
  • Offers home purchase financing, refinances, and construction loans
  • Founded in 2001, headquartered in Baton Rouge, LA
  • Licensed in 43 states and the District of Columbia
  • Funded more than $1 billion in home loans last year
  • Does most of their business in home state of Louisiana

Assurance Financial is an independent, direct-to-consumer full-service residential mortgage banker that offers home purchase financing, mortgage refinances, and construction loans.

This means you can apply for a home loan directly from their website so you don’t need to leave your couch.

But while the company mostly operates online, they do have physical branches in eight states nationwide to serve customers locally.

They’ve been around since the turn of the century, which is a lifetime in the mortgage biz, and funded more than $1 billion in home loans last year.

At present, they’re licensed in 43 states and the District of Columbia, but not currently available in Arizona, Hawaii, Missouri, Nevada, New Jersey, New York, or Utah.

Much of their business came from their home state of Louisiana, along with Alabama, Georgia, Texas, and Virginia.

About 70% of total volume comes from home purchase loans, with the remainder mostly refinances and some HELOCs.

How to Apply for a Mortgage with Assurance Financial

abby

  • You can call them, have them call you, get in touch with a loan officer, or use their digital assistant Abby
  • Their digital mortgage offering is powered by leading fintech company Blend
  • It allows you to complete most of the process electronically from any device
  • They handle the entire loan process from start to finish in-house to ensure turn times are quick

One great thing about Assurance Financial is the ability to apply for a home loan from any device using the latest technology.

They’ve turned to Blend to get that done, and go a step further in simplifying things by bringing in their digital assistant Abby.

The character is actually based on their “very real” Post Closing Manager Abby Widmer.

You can apply with “Abby” in as little as 15 minutes and get helpful tips and guidance along the way so you know what you’re getting into and what to expect.

But if you want a real human to help you right off the bat, you’re also able to peruse the online loan officer directory on their website.

There you can enter your location to see which loan officers are licensed in your state, then get access to their contact information if you want to discuss pricing and loan options first.

Regardless of how you apply, a licensed loan officer will step in at some point to get you approved and help you fund your loan.

Either way, it’ll be super simple because you can complete the app online and link your financial accounts and tax returns using your credentials instead of having to scan or fax paperwork.

Additionally, you can eSign all those pesky disclosures and manage your loan from their online portal 24/7. You’ll also get status updates and a to-do list to stay on track.

As mentioned, they also have branches in eight states if you prefer to do business in-person, including Alabama, Colorado, Georgia, Louisiana, North Carolina, South Carolina, Texas, and Virginia.

Loan Programs Offered by Assurance Financial

  • Home purchase loans
  • Refinance loans: rate and term and cash out
  • Construction loans (one and two-time close options)
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • FHA loans
  • VA loans
  • USDA loans
  • Jumbo loans
  • Non-QM loans
  • Down payment assistance programs
  • Manufactured home loans
  • HELOCs
  • Fixed-rate and adjustable-rate options available

Assurance Financial has a very wide range of loan programs available, and lends on all property types, including single-family homes, condos/townhomes, and even manufactured homes.

You can get financing for a primary residence, vacation home, 1-4 investment property, or even a new build if you’re constructing your dream home.

If you’re an existing homeowner, you can take advantage of a rate and term refinance or a cash out refinance if you want to take advantage of a lower rate and/or your accrued equity.

With regard to loan types, you can get a conforming loan backed by Fannie/Freddie, a government-backed loan such as an FHA or VA loan, or even a jumbo loan.

They say they also offer non-QM options and down payment assistance programs for first-time home buyers, along with home equity lines of credit (HELOCs).

Both fixed-rate and adjustable-rate mortgage options are available in a variety of loan terms.

Assurance Financial Mortgage Rates

One drawback to Assurance Financial is the fact that they don’t list their mortgage rates online or elsewhere.

As such, it’s unclear where they stand in the loan pricing department. It is recommended that you speak to a loan officer to get pricing first before diving into an application.

That way you can be assured that they’re competitively priced relative to other lenders out there so you don’t waste your time.

Also be sure to inquire about any lender fees they may charge, such as an application fee or loan origination fee.

Once you know these things, which together make up the mortgage APR, you can accurately shop your home loan with other lenders to ensure they’re good on price.

Assurance Financial Reviews

They seem to really excel when it comes to customer service, so much so that someone living far away from their corporate headquarters might be tempted to use them.

On SocialSurvey, they have a 4.94-star rating out of 5 from nearly 15,000 customer reviews, which is impressive for both the rating and sheer volume.

Similarly, they’ve got a 5-star rating out of 5 from more than 7,000 reviews on LendingTree, with a 100% recommended score.

They are rated excellent in every category, including interest rates, closing costs, responsiveness, and customer service.

On Zillow, it’s the same deal, a 4.99-star rating out of a possible 5 from almost 100 reviews, which while a smaller sample size is on point with their other ratings.

Lastly, they are a Better Business Bureau accredited company (since 2003) and currently hold an ‘A+’ rating based on customer complaint history.

In summary, Assurance Financial has incredible customer satisfaction ratings, the latest technology, an excellent website, and tons of loan programs to choose from.

Assuming they also offer great pricing, they could be an excellent choice for your home loan needs, whether you’re a first-time buyer or an existing homeowner.

Assurance Financial Pros and Cons

The Pros

  • Can apply for a home loan directly from their website
  • Offer a digital mortgage application powered by Blend
  • Also have a digital assistant to help you along the way
  • Their website is very modern and easy to navigate
  • Lots of programs to choose from including jumbos and non-QMs
  • Excellent customer reviews from past customers
  • A+ BBB rating, accredited company
  • Physical branches in some states
  • Free mortgage calculators and mortgage guides online

The Cons

  • Not licensed in all states
  • Do not list mortgage rates or lender fees on their website

(photo: Stuart Seeger)

Source: thetruthaboutmortgage.com

Mega Capital Funding returns to non-QM lending space

Mega Capital Funding just became the latest company to re-enter the non-Qualified Mortgage space with the launch of several new product lines.

Its new “Mega Elite” non-QM and debt service coverage ratio product lineup includes alternative income documentation products such as its three- and 12-month bank statement products, CPA and borrower prepared P&L and asset utilization, and its investment properties debt service coverage ratio with 1:1 and no ratio options.

According to the rate sheets, through its “Elite Non-QM” product, Mega Capital has loans between $250,000 and $2 million, with a max debt-to-income ration of 50%. The max LTV is 70% for purchase and 65% for refi.

The offering team will be led by Mega Captial Funding CEO Brian Na as well as non-QM veterans Rikki Danganan and Will Fisher.

“With our initial proprietary product offering we’ve set out to focus on a specific segment of non-QM, that will allow our brokers to provide enhanced solutions and our capital partners to achieve their yield goals,” Na said.


Non-QM lending is poised for growth in 2021

HousingWire recently spoke with Mike Fierman, managing partner and co-CEO of Angel Oak, about the non-QM lending outlook for 2021 and how Angel Oak’s “originate to hold” model benefits originators.

Presented by: Angel Oak

Back in March, Mega Capital Funding became one of many mortgage lenders that ceased all non-QM operations.

The company sent out a message to brokers that stated: “Due to retractions in the financial markets as a response to the coronavirus pandemic, and the uncertainty in the non-QM space, MCDI will suspend funding on any and all of our non-QM and non-QM related products. This includes registering, locking or pre-locking loans. Any loan with docs signed, we will fund. Any loan without signed docs will be suspended for the foreseeable future or until market stability returns.”

Now, many investors are once again returning to the non-QM space. Mike Fierman, Angel Oak managing partner and co-CEO, recently told HousingWire he expects the non-QM market in 2021 to grow quickly as the economy recovers from the pandemic.

He noted that, in a normal year, a healthy non-QM market should report approximately $300 billion in originations per annum. In 2020, Fierman said, non-QM origination totaled around $18 billion, so there is plenty of room for growth.

And in addition to an apparent increase in appetite for non-QM on the investor front, there is also room for significantly more risk in the market overall.

The Housing Finance Policy Center’s latest credit availability index shows that mortgage credit availability was just under 5% in the third quarter of 2020, down from 5.1% in the second quarter of 2020 and the lowest it has been since the introduction of the index.

Overall, credit availability in the mortgage market continues to loosen. Mortgage credit availability increased in January, according to the Mortgage Credit Availability index from the Mortgage Bankers Association. The MCAI increased by 2% to 124.6 in January. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012.

“The growth in credit availability in January coincides with a housing market that is poised for a strong start to the year,” said Joel Kan, MBA associate vice president of economic and industry forecasting. “Improvements were driven by the conventional segment of the mortgage market, as lenders added ARM loans with lower credit score and higher LTV requirements. Despite ARM loans accounting for a very small share of loan applications in recent months, lenders are likely looking ahead to a strong home buying season by expanding their product offerings.”

Source: housingwire.com